This invention describes a method for decentralized decoding of a multichannel audio signal by broadcasting the original encoded data and distributing the decoding process between a plurality of receiving units. This allows for the design and manufacture of scalable multichannel audio reproduction systems having an arbitrary number of output channels, composed of a plurality of generic decoder and loudspeaker units each generating fewer output channels. With distributed decoding, a manufacturer can use “off-the-shelf” stereo or mono signal processors, digital-to-analog converters and amplifier components in each generic decoding module, thus reducing manufacturing costs and complexity requirements for each module while offering unlimited scalability in the total number of output channels.